Lê Văn Hiền and alleged accomplices are arrested in HCM City. — Photo courtesy of HCM City Police

HCM CITY — Police have arrested 12 people accused of operating a network of hundreds of “ghost” companies that issued fraudulent value-added tax (VAT) invoices worth more than VNĐ3.1 trillion (US$117 million), authorities said on Thursday.

The alleged ringleader, Lê Văn Hiền, 42, is accused of orchestrating an ecosystem of more than 350 shell companies that generated some 16,700 fake VAT invoices, according to the city’s Economic Police Division (PC03).

Hiền and 11 alleged accomplices have been prosecuted and placed in temporary detention for investigation on charges of illegally printing, issuing and trading invoices and documents related to State budget revenues.

The case was uncovered after investigators detected signs that Thái Hưng Company, based in Hoà Hưng Ward, had concealed revenue and made inaccurate VAT declarations.

A broader probe into firms issuing invoices to the company revealed what police described as an organised network of abnormal businesses.

In coordinated raids carried out three days earlier, officers searched multiple locations and seized 207 USB tokens used for digital invoice signatures, along with computer equipment and relevant documents.

According to investigators, Hiền admitted that from 2022 to 2025 he used 35 shell companies to trade 16,700 fake VAT invoices with a total recorded value of more than VNĐ3.17 trillion, including about VNĐ356 billion in VAT.

He also allegedly used an additional 326 shell companies and 28 bank accounts to circulate funds and legitimise invoice transactions, with total transaction flows exceeding VNĐ3.8 trillion.

Authorities are expanding the investigation to identify individuals and organisations that purchased the invoices, which may have been used for tax evasion, money laundering or asset misappropriation.

They are also examining the responsibilities of relevant State management agencies in licensing and overseeing the companies involved. — VNS